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GLOSSARY/CLARITY ACT

CLARITY Act

REGULATION
DEFINITION
The Digital Asset Market Clarity Act — proposed U.S. legislation that would define which digital assets are commodities (overseen by the CFTC) versus securities (SEC), settling by statute the jurisdictional question that has shaped a decade of crypto enforcement.
The bill passed the House with bipartisan support in July 2025 — the same summer the GENIUS Act made stablecoin rules law — but stalled in the Senate, where negotiations over DeFi protocols, stablecoin yield, and anti-money-laundering provisions pushed a promised vote past mid-2026. Bitcoin's own status isn't in dispute: both agencies treat it as a commodity, the position confirmed in the SEC–CFTC joint interpretation of March 2026.
The stakes are durability. Agency rules — like the SEC's 2026 crypto rulemaking agenda — can be rewritten by the next administration; a statute persists. Whether the Senate acts before November's midterms decides if the U.S. crypto framework is written in law or in reversible regulation.
IN A SENTENCE
“Every crypto lobbyist in Washington has the same answer to every question this year: it depends on the CLARITY Act.”

Key facts

Full nameDigital Asset Market Clarity Act
StatusPassed House Jul '25; Senate stalled
Core splitCommodities→CFTC, securities→SEC

Common questions

Does the CLARITY Act change bitcoin's legal status?

No — bitcoin is already treated as a commodity by both agencies. The bill matters for bitcoin indirectly: it shapes the rules for the exchanges, custodians, and brokers most people use to buy and hold it.

What's blocking it in the Senate?

Disagreements over how to treat DeFi protocols, whether stablecoins may pay yield, and anti-money-laundering requirements. Hearings expected this fall will determine whether it gets a floor vote before the midterms.
IN THE NEWS
The SEC is racing Congress: three crypto rules move while the CLARITY Act stalls →
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